Correlation Between Cantor Equity and Centurion Acquisition

Can any of the company-specific risk be diversified away by investing in both Cantor Equity and Centurion Acquisition at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Cantor Equity and Centurion Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cantor Equity Partners, and Centurion Acquisition Corp, you can compare the effects of market volatilities on Cantor Equity and Centurion Acquisition and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Cantor Equity with a short position of Centurion Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantor Equity and Centurion Acquisition.

Diversification Opportunities for Cantor Equity and Centurion Acquisition

0.76

Correlation Coefficient

Cantor Equity  Centurion Acquisition

Poor diversification

The 3 months correlation between Cantor and Centurion is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Cantor Equity Partners, and Centurion Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centurion Acquisition and Cantor Equity is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Cantor Equity Partners, are associated (or correlated) with Centurion Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centurion Acquisition has no effect on the direction of Cantor Equity i.e., Cantor Equity and Centurion Acquisition go up and down completely randomly.

Pair Corralation between Cantor Equity and Centurion Acquisition

Considering the 90-day investment horizon Cantor Equity Partners, is expected to generate 0.03 times more return on investment than Centurion Acquisition. However, Cantor Equity Partners, is 32.34 times less risky than Centurion Acquisition. It trades about 0.19 of its potential returns per unit of risk. Centurion Acquisition Corp is currently generating about -0.12 per unit of risk. If you would invest  1,001  in Cantor Equity Partners, on September 17, 2024 and sell it today you would earn a total of  48.00  from holding Cantor Equity Partners, or generate 4.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Cantor Equity Partners,  vs.  Centurion Acquisition Corp

Cantor Equity Partners,

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cantor Equity Partners, are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable technical and fundamental indicators, Cantor Equity is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Centurion Acquisition

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Centurion Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's essential indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Cantor Equity and Centurion Acquisition

The main advantage of trading using opposite Cantor Equity and Centurion Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantor Equity position performs unexpectedly, Centurion Acquisition can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Centurion Acquisition will offset losses from the drop in Centurion Acquisition's long position.

The idea behind Cantor Equity Partners, and Centurion Acquisition Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..